Agenda item

Background:

This report provided an update on progress towards setting the Council’s draft capital and revenue budgets for 2016/2017.

It was noted that the draft budget was based on the principles contained in the Medium Term Financial Plan (MTFP) 2016/2020, which had been approved by Cabinet on 29 September 2015 and reflected the latest formula grant assumptions. A summary of the Medium Term Financial Plan was set out in Appendix 1 to the report, with draft budget requirements for the directorates in 2016/2017 set out in Appendices 2a-d to the report.

It was reported that officers had been working with the Cabinet to formulate savings proposals to address the projected revenue budget deficit (£13.8m in 2016/2017) and the broad measures being considered were outlined in the report. It was noted that the budget agreed by Council for 2016/2017 would have to balance to available resources and that the Council’s transformation agenda would be fundamental to closing the gap. Members were advised that the resources available to the Council remained subject to some uncertainty, with the scale of the challenge not being known until after the Autumn Statement on 25 November 2015. However, it was clear that the Council would need to seek to maximise the council tax base and exploit opportunities for business rate growth over the medium and longer term.

In relation to the capital programme it was reported that the existing programme, totalling £122,327,000 for the next three years, reflected planned capital expenditure over the medium term and incorporated everything currently known about capital grant allocations.

It was further noted that recent government announcements to reduce rent charges by 1% year on year for a four year period would need to be factored into the Housing Revenue Account (HRA) financial strategy, and that work had commenced on a review of the impact on the 30 year business plan.

In accordance with the Constitution, this report was the first stage of the budget consultation process leading to further consideration by Cabinet on 9 February 2016 and formal budget and council tax setting by Council on 25 February 2016. Budget proposals would now be submitted to the Council’s overview and scrutiny committees.

Reasons:

It is the responsibility of Cabinet to develop draft budget proposals for consideration by overview and scrutiny committees. These draft proposals are the first stage of the budget consultation process leading to further consideration by Cabinet on 9 February 2016 and formal council tax setting by Council on 25 February 2016.

The timetable for consideration by overview and scrutiny is as follows:

Business Support                                          3 December 2015

Children and Young People                       8 December 2015

Regeneration, Community and Culture    10 December 2015

Health and Adult Social Care                      17 December 2015

Business Support                                          2 February 2016

Cabinet                                                            9 February 2016

Council                                                            25 February 2016